US Coastal secures $330m in US named storm reinsurance with first cat bond

US Coastal Insurance Company (USCIC) and US Coastal Property and Casualty Insurance Company (USCPC)—together known as US Coastal—have sponsored a debut catastrophe bond, securing $330 million in US named storm reinsurance through its Chartwell Re Ltd. (Series 2025-1) issuance.

The cat bond provides indemnity-triggered, per-occurrence reinsurance protection against named storm losses across US Coastal’s hurricane-exposed states: Alabama, Florida, Mississippi, New Jersey, New York, Rhode Island, and Texas.

It features a cascading, shared-limit structure across both entities—each with partially distinct ownership—allowing for coordinated and efficient capital deployment across the group.

This deal represents a significant milestone in US Coastal’s risk transfer evolution, consolidating two reinsurance programs into a single, streamlined platform designed for long-term engagement with capital markets.

The issuance was upsized from an initial $310 million target and priced below initial guidance across all tranches, reflecting strong investor demand and confidence in both the structure and the sponsor.

BMS Capital Solutions & Advisory and Swiss Re Capital Markets acted as joint structuring agents and bookrunners for the catastrophe bond.

The transaction follows over six months of close collaboration between BMS and US Coastal to design a structure that enhances capital efficiency, broadens investor access, and secures multi-year capacity.

For more details on Chartwell Re Ltd. Series 2025-1 and other catastrophe bonds, visit Artemis’s Deal Directory.

Michael McNitt, Chief Executive Officer, Cabrillo Coastal General Insurance Agency, LLC, said, “We appreciate the tremendous effort, creative thinking, and solid execution demonstrated by all parties involved. We’re grateful for the strong support from capital markets investors and the continued backing of our industry-leading reinsurance partners. We value these relationships and look forward to growing and strengthening them in the future.”

Andras Bohm, CEO & Managing Director, BMS Capital Solutions & Advisory, said, “BMS advised on the strategic redesign of US Coastal’s reinsurance program and helped introduce their story to the ILS community. The culmination of hard work and collaboration resulted in one of the largest cat bonds ever sponsored by a Demotech-rated carrier and one of the few shared-limit structures that have been successfully executed between separately owned underwriting companies. The strong investor response – with pricing 8-11% below the mid-point of the initial guidance – reflects the market’s confidence in both the structure and the sponsor. We are proud to have been part of this journey.”

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